Question # 3. The following table classifies a stock's price change as up, down, or no change for both today's and yesterday's prices. Price changes were examined for 100 days. A financial theory states that stock process follow what is called a "random walk". This means, in part, that the price change today for a stock must be independent of yesterday's price change. Test the hypothesis that daily stock price changes for this stock are independent. Let a = 0.05 Price Change Today Up No Change Down Up 14 6 16 Price Change Previous Day No Change Down 16 12 8 14 6 8
Question # 3. The following table classifies a stock's price change as up, down, or no change for both today's and yesterday's prices. Price changes were examined for 100 days. A financial theory states that stock process follow what is called a "random walk". This means, in part, that the price change today for a stock must be independent of yesterday's price change. Test the hypothesis that daily stock price changes for this stock are independent. Let a = 0.05 Price Change Today Up No Change Down Up 14 6 16 Price Change Previous Day No Change Down 16 12 8 14 6 8
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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